Information technology is a part of any business’s budget, but do you know how to set an IT budget? Sure, you know you have to set money aside for computers and software, but how do you know how much? We’ve included a handy calculator to help you determine just how much you’ll save by making technology changes within your organization. Here are a few categories where you can plug in some numbers and see significant savings.
SaaS vs. On-Premise Software
If you’re using software that still requires an installation, you’ll occasionally face new charges. By switching from boxed software to a Software as a Service (SaaS) option, you can ensure your organization always has the latest version of the applications you need to remain competitive. A full on-premise version of Microsoft Office 2013 will cost $399.99 and will be outdated when Office 16 debuts within the next year. Office 365, which will be updated to Office 16 upon release, starts at $5 per user per month. Plug these numbers into the calculator and determine how much your business can save by switching your on-premise software to cloud versions.
Cloud Hosting vs. On-Premise Servers
If your SMB still has on-premise servers, you’re likely dealing with the constant need to upgrade software and replace equipment. Added to this is the burden of ensuring data backups are generated and safely stored and you can probably factor in several major expenses. Over time, servers, tape drives, uninterruptible power supplies, and air conditioning units must be replaced, which can be quite costly. By moving to a cloud hosting provider, you can pay a monthly fee to have all of these tasks handled for you. Compare the cost you’ll pay for your on-site IT infrastructure with what a cloud hosting provider will offer and, over time, you’ll likely see a significant cost savings.
Outsourced Support vs. On-Premise Staff
Talented information technology workers are both expensive and difficult to find. Once hired, an SMB usually has to pay benefits and salary to these employees, whether a business has a full-time need for them or not. By outsourcing technical support, SMBs can access a skill level they might not be able to afford on their own, while also saving money by only paying for the support volume they’ll use.
This handy cost savings calculator can help you plug in the different areas where you can save money, freeing up your budget for other areas. By weighing different cloud options against your on-premise costs, you’ll be able to determine whether a move to the cloud is the right choice for you.